Is the Price Elasticity of Money Demand Always Unity?
Including both monetary gold and nonmonetary gold in a standard money-in-utility model, we establish a presumption that the price elasticity of money demand should be less than I under commodity standards. Applying cointegration methods to data of the world, the United Kingdom, and the United States...
| Publicado en: | Economic Inquiry Vol. 46; no. 4; pp. 587 - 593 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
October 2008
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Including both monetary gold and nonmonetary gold in a standard money-in-utility model, we establish a presumption that the price elasticity of money demand should be less than I under commodity standards. Applying cointegration methods to data of the world, the United Kingdom, and the United States, we find support for the new theory. (JEL E41, E42) Reprinted by permission of the publisher. |
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